Plus... Layoffs hit a new low, the defense stock selling off, and options traders prepare for more retail earnings.

The Dow Jones Industrial Average (DJIA -18,495.66) fell 37.4 points, or 0.2%, for its second loss of the week. Fourteen of the 30 Dow components closed higher, with Wal-Mart Stores, Inc. (NYSE:WMT) and Walt Disney Co (NYSE:DIS) leading the way with 1.2% gains. The biggest loser was Exxon Mobil Corporation (NYSE:XOM), dropping 1.8%.

In other economic news, the U.S. Treasury Department said the federal government had a $113 billion budget deficit in July. This marked a nearly $40 billion decline compared to a year earlier. (MarketWatch)

Gold prices got a lift once again as the U.S. dollar continued to ease. December-dated gold picked up $5.20, or 0.4%, to close at $1,351.90 an ounce. Meanwhile, solid vehicle sales in China sparked a 14-month high for palladium, with the September contract surging 4.6% to $726.40 an ounce.